ALLENTOWN, Pa., Nov. 11 /PRNewswire-FirstCall/ -- Penn Treaty American Corporation (Pink Sheets: PTYA) today announced that it has entered into a non-binding letter of intent to sell its wholly-owned subsidiary, Network Insurance Senior Health Division ("ISHD"). The Company will disclose the identity of the purchaser and the material terms of the offer upon the completion of definitive documentation.

The non-binding letter of intent provides for the completion of due diligence and the preparation of definitive documentation within approximately 30 days.

Headquartered in Palm Harbor, Florida, NISHD distributes life and health insurance products through brokerage operations throughout the United States. NISHD is a wholly-owned subsidiary of Penn Treaty Network America Insurance Company, which is the Company's largest insurance company subsidiary.

Certain statements made by the Company in this press release may be considered forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Although the Company believes that its expectations are based upon reasonable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that the Company will complete a definitive agreement or that the transaction will be consummated. For additional information and risks related to the Company, please refer to its reports filed with the Securities and Exchange Commission.

SOURCE Penn Treaty American Corporation